How Do They Make Money?

Carvana primarily makes money through the sale of used cars via its online platform. This consists of: 1 - Used car sales: They purchase cars from various sources such as auctions, trade-ins, and direct purchases. 2 - Finance and insurance products: They offer financing options and various insurance products to customers to facilitate car purchases. They earn revenue through interest on financing arrangements and commissions from insurance sales. 3 - Extended warranties and service contract: They also provide coverage extending beyond the manufacturer's warranty period for additional fees. 4 - Delivery and pickup fees: They charge fees for delivering/picking up cars from customers/sellers as well as picking up cars from their vending machines. 5 - Wholesale platform: They sell cars to other dealerships or third-party buyers including selling trade-in vehicles that do not meet its retail standards or when there is an excess in inventory.